According to overseas sources, exports of several Indonesian metal products have encountered disruptions, following the implementation of new inspection rules by Indonesian Customs mandating compulsory testing for rare earth elements (REEs) and radioactive materials such as uranium in cargoes. The new regulation has already affected the export flows of key domestic commodity shipments.
On July 25 (Saturday), sources with knowledge of the matter revealed that multiple cargo shipments have experienced delays this month. Indonesian Customs now require additional composition testing reports for certain key mineral products. The export categories primarily affected by this inspection policy are alumina (a raw material for aluminium products) and nickel pig iron (NPI). To date, no clear data is available on the duration of the export disruptions or the total shipment volumes affected.
In response, a spokesperson for the Indonesian Customs Directorate General explained that the government, in coordination with third-party independent inspection agencies, is verifying the composition of exported mineral products, including screening for the presence of rare earth elements. Customs stressed that the government is not arbitrarily suspending or banning exports of commodities such as alumina or nickel, and that exports will be cleared smoothly as long as products are fully compliant and meet all regulatory requirements.
Looking at the policy context, Indonesia has long employed trade controls to promote downstream processing and value addition within its domestic mining sector. A landmark move in this regard was the ban on exports of unprocessed nickel ore and bauxite introduced several years ago. The government's regulatory focus has now shifted to rare earth resources, with regulations enacted last year mandating that REEs be prioritised for domestic processing and utilisation. Earlier this month, the Indonesian Attorney General's Office identified several suspects in connection with the alleged illegal export of REE-bearing raw materials, with those involved accused of falsifying laboratory test reports to conceal REE content and fraudulently obtain export permits.
While Indonesia is not a major global supplier of rare earths or uranium, both materials frequently occur as by-products in the processing of base metals. Tin mining, for example, generates significant quantities of monazite, a mineral from which various rare earth elements can be extracted.
According to Mysteel, the nickel products primarily affected by the customs inspections are MHP (mixed hydroxide precipitate).
